- 3 - insurance plan. However, petitioner did not directly pay any other expenses for the children on a routine basis. During the year in issue, Ms. White lived in a three-bedroom apartment with the four children. She was employed part time as an assisted living care provider, and she received approximately $1,500 per month in welfare and Social Security income. The children were covered by a State medical insurance program. Ms. White estimated her monthly expenses during that year to be as follows: $575 for rent, $100 for utilities, $40 for life insurance, $45 for telephone service, $300 for food, and $280 for a car payment and car insurance. Because two of petitioner’s and Ms. White’s children are developmentally disabled, Ms. White must incur additional expenses. The first issue for decision is whether petitioner is entitled to four dependency exemption deductions. Petitioner claimed dependency exemption deductions for Tristan, Harvey, Khyrie, and Kares. Respondent disallowed each of these deductions. Among other requirements, a taxpayer generally is entitled to a dependency exemption deduction for a child only if the taxpayer provides over half of the child’s total support during the taxable year. Secs. 151(a), (c) and 152(a). The total support for a child includes the entire amount of support which the child receives from all sources, including Social SecurityPage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011